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Essay Question Given: ACCOUNTING CONTROLS AND STANDARD COSTING


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Essay Question Given: ACCOUNTING CONTROLS AND STANDARD COSTING
Course: Finance and Accounting For Business
Academic Level: Masters

2. Deadline: On your page
3. Word count / Number of Pages: 2 Pages
4. Service you require: Essay writing for Accounting Exam (40%)

The module leader is always talking about VARIANCES.
She said she is not going to ask us to calculate variance during the exam.

NOTE: Some things on module slides (I trust your judgement on this)

OBJECTIVES/AIMS OF THE STUDY ON MODULE SLIDES:

– To understand the purpose of control in an organisation
•To interpret budgetary (management) control reports
•To evaluate their usefulness, the information produced and the limitations.

Class Seminar
– Possible causes for the variances
– Sales, materials and labour variances and fixed overhead variances
– Three Levels of Controlels of Control
– Profit centre and its contribution to control
– Features of control
– Control Systems
– Control in organisational context
– Management Accounting Controls
(Dominant controls)

Budgetary Controls. (Rowan Jones & Maurice Pendlebury Public Sector Accounting)
– Budgetary control report, Budgetary control requirement, Approaches, control by variance analysis
•Definitions
•Regulation and monitoring of activities
•Where regulation is fulfilling what has been laid down…
•Monitoring is observing

•Difference between ‘what is’ and ‘what ought to be’ .. is evidenced..and this is stimuli for action
•Concerned with processes by which a system adapts itself to its environment
•Control is not concerned with correcting past mistakes, but directing future activity..

STANDARD COST: Purpose, using standard, Flexing the budget, reconciling actual profit, variance analysis
The variances, Possible causes of variances
Three Levels of Control

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